Why dsm-firmenich is Refocusing on Health & Beauty Sectors
In a move that could sharpen its strategic focus on nutrition, health and beauty, dsm-firmenich has revealed plans to sell its Animal Nutrition & Health (ANH) business to CVC, a prominent global private markets manager, for an enterprise value of approximately €2.2bn (US$2.6bn).
The transaction could enable dsm-firmenich to concentrate its resources on more specialised sectors, whilst maintaining a 20% equity position in the divested ANH Companies.
According to the firm, it plans to adopt a "stable to preferably rising" dividend policy, which could signal its growing commitment to delivering consistent and sustainable returns to shareholders through long-term value creation.
In a company statement, Dimitri de Vreeze, CEO of dsm-firmenich, said: "Since the creation of dsm-firmenich, we have consistently delivered on every milestone in our strategic roadmap.
"From building a unique, integrated company to shaping a finely tuned portfolio with distinctive capabilities, we have now evolved into a leading consumer business focused on nutrition, health and beauty.
"Today marks the final step in that journey, and this transaction reflects our commitment to accelerating our growth and creating long-term value for all stakeholders. At the same time, this agreement opens an exciting new chapter for ANH, enabling it to thrive and realise its full potential."
Understanding the transaction structure
According to the company, ANH generated approximately €3.5bn (US$4.1bn) in 2025 as a global provider of science-based animal nutrition and health solutions, addressing areas such as vitamins and feed efficiency. The sale encompasses all ANH activities, including Performance Solutions, Premix and Precision Services.
The business will be separated into two independent entities: the "Solutions Company" and the "Essential Products Company", collectively known as the "ANH Companies". According to dsm-firmenich, these two companies will maintain close working relationships.
This development follows the earlier sale of the Feed Enzymes activities to Novonesis for €1.5bn (US$1.7bn) in 2025, bringing the total enterprise value to €3.7bn (US$4.4bn).
The agreement, announced on 9 February 2025, could allow dsm-firmenich to dedicate its full attention to core, higher-margin, consumer-focused and specialised nutrition, health and beauty sectors.
Creating value in animal nutrition
In the announcement, Steven Buyse, Managing Partner at CVC, said: "We are delighted to partner with dsm-firmenich and the ANH team. This transaction represents a unique opportunity to create two new leading companies in the animal nutrition and health space. Both businesses offer significant potential for value creation.
"The Solutions Company will continue to drive innovation and efficiency in animal farming, delivering tailored solutions with high proximity to its global customer base. The Essentials Products Company will be built as a resilient global leader in essential feed, food and fragrance ingredients, providing customers with reliable, high-quality supply based on an independent and highly integrated value chain."
Steven added that both companies will work together to maximise customer value.
Sharing the news on LinkedIn, Dimitri said: "I want to extend a special thanks to everybody in the ANH team: your unwavering commitment and resilience have been instrumental throughout this journey, and your dedication and energy made all the difference."
Building on established collaborations
Prior to DSM's transformation into dsm-firmenich through the completion of a merger of equals between the Dutch company and Swiss-based Firmenich in 2023, DSM had established Chemicalnvest in 2015, a successful joint venture in which CVC also held a majority stake.
According to dsm-firmenich, partnerships have proved important to the company by strengthening its innovation capabilities, advancing its sustainability objectives, extending its global market presence and securing supply chains.
Through collaboration with industry leaders, NGOs and research institutions, the company could combine its expertise in nutrition, health and beauty with external specialised knowledge to develop value-added sustainable solutions.
The strategic partnership with CVC represents a continuation of this collaborative approach, enabling both the divested ANH businesses and dsm-firmenich to pursue their respective growth strategies whilst maintaining alignment through dsm-firmenich's retained equity stake.
